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2013
MyCCA.net © 2011 all rights reserved
Cyndy McDonald
HECA 2013
An Insider’s Look at Financial Aid
Training Agenda
Our learning objectives:
 Review/discuss how colleges approach the practice of strategic
enrollment manag...
This information will help you
build college financial fit
services into your practice and
transform how you help
families...
Presenters/Contributors
 Cyndy McDonald
• Owner McDonald & Associates College
Consulting & My College Consultant Assistan...
College Affordability
 Open the mystery box of
college funding for families
 Help families make
appropriate college
choi...
Not a Cookie Cutter Process
 One size DOES NOT fit all people.
 Families need to know how their
family situation will fi...
Exponential Increase
 Enrollment management contributes to
process
 Increases in merit awards has outpaced
increases in ...
A Picture
is worth a
thousand
words…
(C) 2009 College Inroads, All rights reserved
What is Strategic Enrollment Management ?
(C) 2009 College Inroads, All rights reserved
 Definition:
Enrollment Managemen...
What SEM does
(C) 2009 College Inroads, All rights reserved
 Increases “net tuition revenue” streams
• Increase “full pay...
How to Enroll the Class You Want
(C) 2009 College Inroads, All rights reserved
What drives financial aid packaging?
(C) 2009 College Inroads, All rights reserved
 “A student’s willingness to pay is th...
(C) 2009 College Inroads, All rights reserved
What’s My Flavor
Tailoring college affordability to
family needs
My College Consultant Assistant © 2011 all rights reserved
 Josie’s family:
• Dad is a teacher, mom shares a teaching position
so she can be home more with the kids. AGI is a
$120,...
 Enrique’s family:
• Single parent mom, works as nurse’s aid at the
local hospital; has 3 other children, no child
suppor...
Financial Aid
Whole
1/2 - 1/2
Merit
Merit
½ - ½
Whole
Josie EFC:
Derek EFC:
Enrique EFC:
1/2-1/2
Merit
Whole
$25,700
$180,...
Whole:
Eligible for all grants/aid available.
Should have substantial aid package
with Pell Grants, university grants, &
w...
College Affordability Shaper Categories
 1. Introducing the concept
of 3 affordability types based
on Family EFC: High Ne...
Scholarship Fallacy
 Q: Why do families look for outside
scholarships?
 A: To replace family contribution
 Real A: Outs...
Finding your flavor
1. Help families
calculate their
Estimated Family
Contribution
2. Use the EFC to
calculate their
famil...
Other possible factors
• Own business (under 100 employees) or farm with
high expenses/medium income
• Home ownership or p...
Tailoring affordability to each family’s situation
Log into College Affordability Shaper
Matching
Affordability
My College...
Calculating EFC
Identifying Income Elements
Identifying Asset Elements
 Pros
 Often qualify for whole kit n’ caboodle- Pell, State, work-
study, student loans or has substantial mix of grants...
 Make families aware that:
 Scholarship Fallacy applies here particularly!
 Money cannot equal more than cost of attend...
• Apply to colleges where the student’s academic
profile is in the top range
Makes awards more gift rather than self-help...
• Own business (under 100
employees) or farm with high
expenses/medium income
• Home ownership or property
ownership can c...
 Pros
o Out of pocket cost will be similar for public or private universities/colleges
• At public colleges student could...
 Make families aware that:
 Scholarship Fallacy applies here particularly!
 Colleges can package heavily on student and...
• Apply to PRIVATE colleges where the
student’s academic profile is in the top
range
 Makes awards more gift rather than ...
 Compare Financial Aid Awards
• Merit or need based scholarships may replace:
Student loans/work
Student scholarships- ...
• Pro
• Colleges are competing for your $$$
• No Scholarship Fallacy to worry about here. Every scholarship
becomes $ in y...
 Make families aware that:
• Incorrect calculation of the family situation can
make a big difference
• A change in the fa...
Taming the Beast:
Understanding College
Affordability
Customize Affordability
plans to enhance your
practice
Finding a Financial Match
 Use EFC Categories
 Use EFC Strategies
 Find and add Tagged Lists
 Use Targeted Search
 Mo...
Education is a social process.
Education is growth.
Education is not a preparation for life;
education is life itself.
Joh...
Feel Free to Contact me:
 Cyndy McDonald cyndy@mycca.net
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College Affordability Workshop - HECA Conference, June 2013

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An Insider’s Look at Financial Aid

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College Affordability Workshop - HECA Conference, June 2013

  1. 1. 2013 MyCCA.net © 2011 all rights reserved Cyndy McDonald HECA 2013 An Insider’s Look at Financial Aid
  2. 2. Training Agenda Our learning objectives:  Review/discuss how colleges approach the practice of strategic enrollment management.  Define 3 categories families fall into in terms of financial consideration.  Strategies and tips to determine which college funding your families can fall into  Introduction to the College Affordability tools in MyCCA.net and how they can be used to guide families towards best fit colleges
  3. 3. This information will help you build college financial fit services into your practice and transform how you help families approach college affordability. Today’s goal:
  4. 4. Presenters/Contributors  Cyndy McDonald • Owner McDonald & Associates College Consulting & My College Consultant Assistant (mycca.net) • 22 years of experience • Nationally recognized as having expertise in this area • Does training at national/regional level  Contributions from Michael Davila • Owner/Director College Inroads • attended US Naval Academy & taught there • Currently pursuing a master’s degree with emphasis on Strategic Enrollment management at UT Austin
  5. 5. College Affordability  Open the mystery box of college funding for families  Help families make appropriate college choices, including college scholarships  Be proactive with families • “What are your plans for paying for college?” My College Consultant Assistant © 2011 all rights reserved
  6. 6. Not a Cookie Cutter Process  One size DOES NOT fit all people.  Families need to know how their family situation will fit into the financial aid process.  Introducing a new way to look at college affordability My College Consultant Assistant © 2011 all rights reserved
  7. 7. Exponential Increase  Enrollment management contributes to process  Increases in merit awards has outpaced increases in need based awards  Merit scholarships offers are driven by Strategic Enrollment Management (SEM) goals; supported by data My College Consultant Assistant © 2011 all rights reserved
  8. 8. A Picture is worth a thousand words… (C) 2009 College Inroads, All rights reserved
  9. 9. What is Strategic Enrollment Management ? (C) 2009 College Inroads, All rights reserved  Definition: Enrollment Management is the strategic and selective use of offers of financial aid to shape the incoming freshman class in furtherance of the institution’s goals. It is distinguished from the allocation of financial aid based on student needs or on academic merit.
  10. 10. What SEM does (C) 2009 College Inroads, All rights reserved  Increases “net tuition revenue” streams • Increase “full pays” • Lower the discount rate • Increase the enrollment yield  Increases the academic profile of entering freshman class  Increases diversity  Increases retention  Can all of these be simultaneously achieved?
  11. 11. How to Enroll the Class You Want (C) 2009 College Inroads, All rights reserved
  12. 12. What drives financial aid packaging? (C) 2009 College Inroads, All rights reserved  “A student’s willingness to pay is the most important factor in determining the size of an aid package” Noel Levitz White Paper “Connecting Enrollment and Fiscal Management”  What is “willingness to pay” vs “ability to pay”?  Hint: Look at what the College Enrollment Managers look at! Table Analysis…
  13. 13. (C) 2009 College Inroads, All rights reserved
  14. 14. What’s My Flavor Tailoring college affordability to family needs My College Consultant Assistant © 2011 all rights reserved
  15. 15.  Josie’s family: • Dad is a teacher, mom shares a teaching position so she can be home more with the kids. AGI is a $120,000. They have $50,000 in the bank, $100,000 in house equity, and a younger sibling just starting high school.  Derek’s family: • Dad and mom are professionals, both bring home high salaries, dad owns his own financial firm. They have an AGI of $375,000. They have extensive assets, and a lot of home equity. Their younger daughter is a sophomore in high school. My College Consultant Assistant © 2011 all rights reserved
  16. 16.  Enrique’s family: • Single parent mom, works as nurse’s aid at the local hospital; has 3 other children, no child support. AGI is $45,000. Enrique works too, earning about $3000 per year. Mom has no home equity or savings. My College Consultant Assistant © 2011 all rights reserved
  17. 17. Financial Aid Whole 1/2 - 1/2 Merit Merit ½ - ½ Whole Josie EFC: Derek EFC: Enrique EFC: 1/2-1/2 Merit Whole $25,700 $180,000 $2600 My College Consultant Assistant © 2011 all rights reserved
  18. 18. Whole: Eligible for all grants/aid available. Should have substantial aid package with Pell Grants, university grants, & work study. 1/2 - 1/2 : Same out of pocket expense for attending public/private schools. At the public school family foots most of the bill. At the private school ½ paid by student, ½ paid by school. Merit: Scholarships are fundamental to college financing- $ in the pocket. Only source of grants/scholarships My College Consultant Assistant © 2011 all rights reserved
  19. 19. College Affordability Shaper Categories  1. Introducing the concept of 3 affordability types based on Family EFC: High Need (Whole), Partial Need (Half-Half), and Merit (Skim)  2. Log in to look at Amy Awesome’s EFC calculations in the College Affordability Shaper  3. View strategies on College Affordability Shaper 1/2-1/2 Merit Whole
  20. 20. Scholarship Fallacy  Q: Why do families look for outside scholarships?  A: To replace family contribution  Real A: Outside Scholarships are part of financial aid • Outside Scholarships DO NOT replace family contribution Affordability strategy: Help families understand how scholarships are actually used in college financing. Using the 3 categories strategy will help. My College Consultant Assistant © 2011 all rights reserved
  21. 21. Finding your flavor 1. Help families calculate their Estimated Family Contribution 2. Use the EFC to calculate their family flavor • Use MyCCA.net’s College Affordability Shaper to calculate EFC. Category Approximate EFC Whole $11,000 & less ½- ½ $11,100-$30,000 Merit (Skim) $45,000+ Check out the resources for Net Price calculators and more on the Survey Module My College Consultant Assistant © 2011 all rights reserved
  22. 22. Other possible factors • Own business (under 100 employees) or farm with high expenses/medium income • Home ownership or property ownership can create different EFC in FM & IM • Special Circumstances not counted in FM My College Consultant Assistant © 2011 all rights reserved
  23. 23. Tailoring affordability to each family’s situation Log into College Affordability Shaper Matching Affordability My College Consultant Assistant © 2011 all rights reserved
  24. 24. Calculating EFC
  25. 25. Identifying Income Elements
  26. 26. Identifying Asset Elements
  27. 27.  Pros  Often qualify for whole kit n’ caboodle- Pell, State, work- study, student loans or has substantial mix of grants/scholarships  Helps students focus on school, not worry as much about finances  College may offer large amounts of grants and/or scholarships  Non-institutional Merit scholarships become part of financial need  Merit or need based scholarships may replace self-help aid If your family flavor is: Whole EFC: $0- $10,999 My College Consultant Assistant © 2011 all rights reserved
  28. 28.  Make families aware that:  Scholarship Fallacy applies here particularly!  Money cannot equal more than cost of attendance, so some money can be deleted from college offer  Some schools may not offer full amount needed- “gapping”  Schools may offer money in parent, student loans that extend beyond family’s financial capacity.  If school uses Profile, with the Non-custodial form or business or farm supplement “whole” status can rapidly change  Mandated Student contribution- can range from $1000- $5000 per year Affordability: Whole My College Consultant Assistant © 2011 all rights reserved
  29. 29. • Apply to colleges where the student’s academic profile is in the top range Makes awards more gift rather than self-help heavy • Apply to colleges that have eliminated self help aid for low income students. These policies include:  Reducing or eliminating parent contribution or parent/student loans  Examples: Amherst, Brown, Dartmouth, Stanford, Vanderbilt, Yale List available at www.finaid.org  Apply to colleges who will fully or come close to fully funding financial need  Use websites or databases for searching (mycca.net, College Navigator, collegedata.com, other)  Usually high need met ≠ high merit Write letters of special circumstances to appeal financial aid offers as needed Affordability Strategy: Whole My College Consultant Assistant © 2011 all rights reserved
  30. 30. • Own business (under 100 employees) or farm with high expenses/medium income • Home ownership or property ownership can create different EFC in FM & IM • Special Circumstances not counted in FM Other possible factors 1/2 - 1/2 My College Consultant Assistant © 2011 all rights reserved
  31. 31.  Pros o Out of pocket cost will be similar for public or private universities/colleges • At public colleges student could qualify for a little need based aid • At private schools, student will qualify for ½ of the cost in financial aid • Opens a new world of opportunities based on other factors, not just cost • Merit scholarships become part of financial need/ or out of pocket $ at public schools • Can benefit from “No loan” policies at private schools as well If your family flavor is: 1/2 – 1/2 EFC: $11,000- $30,000 My College Consultant Assistant © 2011 all rights reserved
  32. 32.  Make families aware that:  Scholarship Fallacy applies here particularly!  Colleges can package heavily on student and parent loans, making a college not affordable  Merit money can make a big difference in choices for this group of students  Forms required by college can change category from 1/2-1/2 to Merit (if using Profile) Affordability: 1/2 - 1/2 My College Consultant Assistant © 2011 all rights reserved
  33. 33. • Apply to PRIVATE colleges where the student’s academic profile is in the top range  Makes awards more gift rather than self-help heavy • Some Students can benefit from colleges with “no loan” policies • Apply to colleges that offer high merit awards-  Love these types of students  Know if they offer $$- they will come (Enrollment management strategies) • Find these factors through websites: mycca.net, collegedata.com, college navigator, other Affordability Strategy: 1/2 -1/2 My College Consultant Assistant © 2011 all rights reserved
  34. 34.  Compare Financial Aid Awards • Merit or need based scholarships may replace: Student loans/work Student scholarships- offered by the college Parent loans  Check college policies • Write letters of special circumstances to appeal financial aid offers as needed  Use “1st choice” strategy Affordability Strategy: ½ -1/2 My College Consultant Assistant © 2011 all rights reserved
  35. 35. • Pro • Colleges are competing for your $$$ • No Scholarship Fallacy to worry about here. Every scholarship becomes $ in your pocket, and will help your EFC. • Money may not be an issue • Standardized test scores and grades increase in weighted importance If your family flavor is: Skim or Merit EFC: $55000- $99000 My College Consultant Assistant © 2011 all rights reserved
  36. 36.  Make families aware that: • Incorrect calculation of the family situation can make a big difference • A change in the family situation can affect EFC • Academic profile becomes key factor • US News top schools often do not offer top merit $$ My College Consultant Assistant © 2011 all rights reserved
  37. 37. Taming the Beast: Understanding College Affordability Customize Affordability plans to enhance your practice
  38. 38. Finding a Financial Match  Use EFC Categories  Use EFC Strategies  Find and add Tagged Lists  Use Targeted Search  More lists to be added.
  39. 39. Education is a social process. Education is growth. Education is not a preparation for life; education is life itself. John Dewey Advisor tip: • Adding affordability to your practice is easy and beneficial •Academic and financial fit go hand in hand. You don’t have to be the expert to offer a tool with academic guidance • Choose the level that is comfortable for you and start there.
  40. 40. Feel Free to Contact me:  Cyndy McDonald cyndy@mycca.net

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